Is Sports Betting Legal in Iowa? Everything You Need to Know

Date: 24.06.2025

Legal Sports Betting Guide

In Iowa, sports betting has been legal since May 2019. Following the 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA), Iowa passed Senate File 617, launching a regulated market with 19 licensed sportsbooks, including DraftKings and Bet365.

Iowa’s sports betting market is a Midwestern success story. Legalized on May 13, 2019, via Senate File 617, the state moved swiftly after PASPA’s 2018 repeal. By August 15, 2019, 13 of Iowa’s 19 casinos launched retail sportsbooks, with mobile apps soon following. Today, 19 operators, including FanDuel and Caesars, thrive across online platforms and casino betting lounges.

Regulated by the IRGC, Iowa’s market generated a $2.77 billion handle in 2024, with $305.7 million in January 2025 alone. A 6.75% tax fuels education and infrastructure, while a ban on in-state college player prop bets protects student-athletes. Though offshore sites tempt some, Iowa’s legal options offer safety and variety.

Iowa’s Path to Legalization

Iowa’s sports betting journey began with the 2018 Murphy v. NCAA ruling, which struck down PASPA, freeing states to regulate wagering.

Senate File 617, signed by Governor Kim Reynolds on May 13, 2019, passed with bipartisan support (Senate: 31–18, House: 61–31), bringing betting out of the black market. Retail sportsbooks launched on August 15, 2019, at 13 casinos, with mobile platforms following.

Initially, bettors needed in-person registration at casinos, a hurdle lifted on January 1, 2021, spurring mobile betting’s dominance (90% of 2024 wagers).

In 2023, scandals involving Iowa and Iowa State athletes prompted a ban on in-state college player prop bets, reinforcing athlete protections. The IRGC ensures compliance, fair odds, and consumer safety, making Iowa a model for regulated betting.

Regulatory Framework and Restrictions

Senate File 617 and the IRGC govern Iowa’s betting market with clear rules:

Age and Location: Bettors must be 21+ and in Iowa, verified by geolocation technology.
Taxation: A 6.75% tax on gross gaming revenue generated $14.76 million in 2024 for education, infrastructure, and gambling treatment.
College Betting Ban: In-state college player prop bets (e.g., points scored by a Hawkeye) are prohibited, but team-based bets are allowed.
Licensing: Each of Iowa’s 19 casinos can partner with up to two or three online sportsbooks, with licenses costing $45,000 initially and $10,000 annually.

Federal laws like the 1961 Wire Act and 2006 UIGEA bolster Iowa’s regulated market, deterring offshore betting. The IRGC mandates public access to betting rules, odds, and payout periods, ensuring transparency and responsible gambling tools like self-exclusion.

Recent Developments in Hawaii Sports Betting

[January 14, 2025]: Iowa Mobile Sports Betting Sees $273M Handle in December

[January 14, 2025]: Iowa Lawmakers Debate Casino Moratorium

[December 27, 2024]: Betfred Continues U.S. Pullback, Exiting Washington and Iowa

Top Sportsbooks and Betting Platforms

Iowa’s 19 licensed sportsbooks offer diverse options, blending retail excitement with mobile convenience. Leading operators include:

DraftKings: Partnered with Wild Rose Casinos (Clinton, Emmetsburg, Jefferson), offering live betting and a $150 bonus for a $5 wager.
FanDuel: Tied to Diamond Jo Casinos (Dubuque, Northwood), with live streaming and competitive odds.
Bet365: Linked to Hard Rock Sioux City and Casino Queen Marquette, excelling in in-play betting.
Caesars Sportsbook: Paired with Isle Casino (Bettendorf, Waterloo) and Harrah’s/Horseshoe (Council Bluffs), known for promotions.
BetMGM: With Diamond Jo Worth and Catfish Bend, offering a sleek app and retail betting.

Casinos like Prairie Meadows and Rhythm City invested $14 million in 2019 for betting lounges and kiosks, creating vibrant betting hubs.

Mobile apps dominate, handling 90% of bets in 2024, with intuitive interfaces, live betting, and same-game parlays. Operators like Bally Bet, Betfred, and ESPN BET enhance competition, supported by Iowa’s low 6.75% tax rate.

13 active online sports betting operators serve the state, alongside Advance Deposit Wagering (ADW) and Daily Fantasy Sports (DFS) platforms:

Active Online Sportsbooks: Bally Bet, Bet365 (Casino Queen Marquette, Hard Rock Sioux City), BetMGM (Diamond Jo Worth, Catfish Bend), BetRivers (Wild Rose), Caesars (Isle Bettendorf/Waterloo, Harrah’s/Horseshoe Council Bluffs, Prairie Meadows), Circa Sports, DraftKings (Wild Rose), ESPN BET (2023 rebrand from Barstool), Fanatics Sportsbook (rebranded from PointsBet, February 2024), FanDuel (Diamond Jo Dubuque/Northwood), Hard Rock Bet (Hard Rock Sioux City), Q Sportsbook (Q Casino), Sporttrade (Wild Rose Clinton, launched May 2024).

ADW Operators (Horse Racing): TwinSpires (Churchill Downs), TVG Network, Xpressbet, Premier Turf Club.

DFS Operators: DraftKings and FanDuel, offering legal fantasy contests.

Other: Iowa Electronic Markets (IEM), run by the University of Iowa, allows betting on events like U.S. elections.

Inactive Operators: Betfred, Betway, ClutchBet, DRF Sportsbook, Elite Sportsbook, Fubo Sportsbook, PointsBet, SuperBook Sports, theScore Bet, Tipico, and Unibet have exited Iowa or the U.S. market by 2024.

Betting Options and Market Features

Iowa bettors enjoy a broad range of wagering options:

Spreads
Moneylines
Totals (over/under)
Parlays
Prop bets (except in-state college players)
Futures
Live betting
Same-game parlays

Popular sports include NFL, NBA, MLB, NHL, MLS, and college football/basketball, with heavy focus on Iowa Hawkeyes and Iowa State Cyclones.

Restrictions prohibit bets on high school sports, politics, entertainment awards, and esports (outside fantasy contests). The 2023 ban on in-state college player prop bets protects athletes, allowing only team-based bets for local universities.

Mobile apps offer live streaming and real-time odds, with 90% of 2024’s $2.77 billion handle placed online. The IRGC’s geolocation and age verification ensure compliance, while operator AI enhances user experience and monitors risky behaviors.

Economic Impact and Growth

Iowa’s betting market is an economic powerhouse. In 2024, it generated a $2.77 billion handle, with $14.76 million in taxes at 6.75%. January 2025 saw a $305.7 million handle, up 15.2% year-over-year. Taxes fund education, infrastructure, and $1.2 million for gambling treatment programs in 2024.

Casinos like Prairie Meadows, a nonprofit, support thousands of jobs in hospitality and tech, with 7,048 employed across Iowa’s gaming industry in 2023 (74.7% Iowans).

Tribal casinos, like Meskwaki Bingo Casino, boost local economies. Compared to Illinois ($1.1 billion January handle), Iowa’s market is smaller but competitive, thanks to its low tax rate. No economic disruptions are reported, with steady growth projected.

Offshore Betting Risks

Despite Iowa’s legal market, some bettors use offshore sites like Bovada for broader markets (e.g., politics, in-state player props) or perceived better odds. These platforms pose significant risks:

Legal Violations: Offshore betting breaks Iowa law, though individual prosecutions are rare.
Financial Risks: Payment delays, withheld winnings, or account freezes lack legal recourse.
Security Risks: No U.S. data protections increase fraud and breach risks.
Unfair Odds: Unaudited odds may disadvantage bettors.
No Safeguards: Lack of responsible gambling tools heightens addiction risks.

The IRGC issued 2024 warnings against offshore operators, emphasizing enforcement. Legal alternatives include 19 sportsbooks and social platforms like Fliff, offering sweepstakes-based gaming. Bettors should stick to regulated platforms for safety.

Responsible Betting in Iowa’s Market

Iowa’s regulated market prioritizes responsible gambling. IRGC mandates tools across all sportsbooks:

Deposit/Time/Loss Limits: Cap spending or playtime, with instant decreases and delayed increases.
Self-Exclusion: Block access for one year or permanently.
Reality Checks: Alerts on time/money spent.
Support Links: Display 1-800-BETS-OFF and YourLifeIowa.org.

Practical tips include:

Budget Wisely: Use disposable income (e.g., $20 per session from $100).
Avoid Chasing Losses: Don’t raise bets to recover losses.
Take Breaks: Pause every 30–60 minutes.
Understand Odds: Set realistic expectations.
Healthy Alternatives: Use hobbies or exercise for stress relief.

The NCPG estimates 2-3% of Americans face gambling issues, with sports bettors at higher risk. Iowa’s 1-800-BETS-OFF and 1-800-GAMBLER offer 24/7 support, with $1.2 million allocated to treatment in 2024. Operator AI monitors risky behaviors, ensuring safety.

Iowa’s Betting Future: Steady Growth

Iowa’s betting market is set for steady growth in 2025, with no major legislative changes expected. The $305.7 million January handle signals strong demand, driven by mobile betting.

New operators may emerge if casinos swap partners, though the 19-sportsbook cap limits expansion. Trends like micro-betting and same-game parlays will attract younger bettors, but esports remains restricted outside fantasy contests.

The ban on in-state college player prop bets will likely persist, reflecting NCAA and IRGC priorities. Iowa’s 6.75% tax rate keeps it competitive, drawing operators like ESPN BET. AI and VR integration may enhance apps, boosting engagement. Iowa’s market remains a stable, responsible leader, balancing growth with consumer protections.